Is The eBay Fee Increase Actually Good For Business?

February 18, 2005

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Much of my email from readers this month concerned the recent announcement from eBay that it will increase many seller fees on February 18, 2005. Since many business people use eBay's online store system as their primary ecommerce point of sale, it's no surprise that most of the emails I received were of the angry variety. One email in particular caught my attention because it urged me to visit a website to sign an online petition protesting the fee hike. The email directed me to

Larger sellers may consider starting their own online store or sell elsewhere.

Prices of auctions will increase. Buyers will turn back to retail stores. The idea of eBay is that you can find things cheaper there, even when adding shipping and handling together.

Discourage new sellers, decreasing competition (which is what the eBay market thrives on for pricing).

Only time will tell if the predictions come true, but for the short term many smaller sellers are closing down their eBay stores and moving up the street to Yahoo.com. Here's to your success! Small Business Q&A with Tim Knox Copyright (c) 2005 Tim W. Knox Tim Knox is a nationally-known small business expert who writes and speaks frequently on the topic. For more information or to contact Tim please visit one of his sites below.

http://www.dropshipwholesale.net